FAFSA and money on saving account

<p>If they audit you, yes, it will look suspicious. It is sloppy as well and you should not have done this. If you are audited, they will ask for a trail so it doesn’t look like you took the money out of your account and stuck it in your business account to avoid reporting it. If the source of the money is very easily traced for business purposes and you can show how you just stuck it in there to get your $100 bonus and put it back, you’ll be fine, other than the pain in the neck you will get in having to get the back up documentations. But if have no proof, and that money kind of filtered in there from all over the place and suddenly right before you file FAFSA you decide to move it over to business, yes, you might have a problem. </p>

<p>I suggest you keep your business and personal account separate. When I worked, I had a lot of self employed clients and a number of them did get into trouble for doing the sort of foolishness you did, and in some cases it was pretty clear that the funds were business funds, but when the IRS or feds of any sort start putting the squeeze on,y it’s often a good idea to settle quickly and some of our clients did end up having to do so. In your case, it 's doubtful you’ll get any trouble for this, but if you continue operating that way, you are truly asking for trouble. It is suspicious. You are not supposed to be mixing personal and business.</p>